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FTC Solar (FTCI)
NASDAQ:FTCI
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FTC Solar
(NASDAQ:FTCI)
48Neutral
Positive Factors
Competitive Position
Agreements such as the 1GW tracker supply with Dunlieh Energy and the multi-year agreement with Strata Clean Energy demonstrate the company's newfound competitive position and potential for growth.
Contracted Backlog
The strong contracted backlog that stands at $514M, compared to $505M at the end of 2Q24, portends a stronger 2025-and-beyond performance for FTC.
Revenue Growth
FTC posted strong sequential revenue growth and margin improvement, with OPEX at post-IPO lows despite higher volumes.
Negative Factors
Cash Reserves
The decrease in cash reserves raises concerns about sustainability in the absence of a turnaround in profitability.
Margin Pressure
Margins remain under pressure due to lack of scale.
Revenue Challenges
Significant drop in revenue and negative gross margins indicate ongoing challenges in the market and the company's operations.
FTC Solar (FTCI) vs. S&P 500 (SPY)
Market Cap
$41.05M
Dividend YieldN/A
Average Volume (3M)108.67K
Price to Earnings (P/E)―
Beta (1Y)2.44
Revenue Growth-62.71%
EPS Growth11.58%
CountryUS
Employees202
SectorTechnology
Sector Strength65
IndustrySolar
Share Statistics
EPS (TTM)-3.83
Shares Outstanding12,867,671
10 Day Avg. Volume58,469
30 Day Avg. Volume108,675
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.70
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit8.41
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.13Price Target Upside29.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
FTC Solar Business Overview & Revenue Model
Company DescriptionFTC Solar, Inc. provides solar tracker systems, technology, software, and engineering services in the United States, Vietnam, and internationally. It offers two-panel in-portrait single-axis tracker solutions under the Voyager brand name. The company also provides SunPath, a software solution to enhance energy production; Atlas, a web-based enterprise-level database that allows users to manage their project portfolio; and SunDAT, a software solution enables automated design and optimization of solar panel systems across residential, commercial, and utility-scale sites. Its customers include project developers; solar asset owners; and engineering, procurement, and construction contractors that design and build solar energy projects. FTC Solar, Inc. was incorporated in 2017 and is headquartered in Austin, Texas.
How the Company Makes MoneyFTC Solar generates revenue primarily through the sale of its solar tracking systems, including the Voyager tracker, which is designed to increase the energy output of solar panels by enabling them to follow the sun's path across the sky. The company earns money by contracting with solar project developers and operators, providing them with tailored solar tracker systems and related services. Key revenue streams include equipment sales, installation services, and ongoing maintenance and support. Additionally, FTC Solar may engage in partnerships or collaborations with other firms in the renewable energy sector, contributing to its revenue through co-developed projects or shared technology solutions.
FTC Solar Financial Statement Overview
Summary
FTC Solar is facing significant financial challenges. The income statement reveals weak performance with declining revenues and negative margins. The balance sheet indicates low leverage but also declining equity, while cash flow remains negative, highlighting liquidity issues.Income Statement
FTC Solar shows weak income statement performance with negative margins, including a gross profit margin of -14.06% and a net profit margin of -82.89% for the TTM. Revenue has significantly declined from $127 million in 2023 to $57 million in the TTM, indicating a revenue growth rate of -54.85%. The company struggles with profitability, reflected in negative EBIT (-89.12%) and EBITDA (-79.46%) margins.35
Negative
Balance Sheet
The balance sheet presents both strengths and challenges. The debt-to-equity ratio is relatively low at 0.06, indicating low leverage, but stockholders' equity has decreased from $62 million to $30 million. The equity ratio is 33.17%, showing a moderate level of equity financing. The company holds $8.26 million in cash, suggesting some liquidity despite reduced equity.50
Neutral
Cash Flow
Cash flow analysis reveals a challenging landscape. Operating cash flow is negative at -$24.28 million, with a significant free cash flow decline from -$53.47 million to -$25.99 million, reflecting a 51.38% improvement but still negative. The operating cash flow to net income ratio is 0.51, indicating cash flow challenges relative to net losses.40
Negative
| Breakdown | ||||
| Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 127.00M | 123.07M | 270.52M | 187.35M | 53.12M | Gross Profit |
| 8.31M | -27.23M | -32.55M | 3.64M | -1.95M | EBIT |
| -50.78M | -99.57M | -126.80M | -16.93M | -12.37M | EBITDA |
| -49.00M | -97.30M | -105.37M | -16.88M | -11.96M | Net Income Common Stockholders |
| -50.29M | -99.61M | -106.59M | -17.32M | -13.49M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 25.23M | 44.38M | 102.19M | 32.36M | 7.22M | Total Assets |
| 123.07M | 134.40M | 243.02M | 71.39M | 33.83M | Total Debt |
| 1.86M | 1.20M | 1.79M | 1.78M | 7.83M | Net Debt |
| -23.37M | -43.18M | -100.39M | -30.57M | 612.00K | Total Liabilities |
| 60.60M | 67.95M | 100.15M | 63.94M | 42.27M | Stockholders Equity |
| 62.47M | 66.45M | 142.87M | 7.45M | -8.45M |
| Cash Flow | Free Cash Flow | |||
| -53.47M | -55.49M | -133.88M | -767.00K | -272.00K | Operating Cash Flow |
| -52.66M | -54.51M | -132.85M | -511.00K | -254.00K | Investing Cash Flow |
| -397.00K | -4.25M | 21.31M | 1.87M | -18.00K | Financing Cash Flow |
| 33.95M | 903.00K | 180.37M | 23.78M | 7.00M |
FTC Solar Technical Analysis
Positive
3.19
Price Trends
2.85
Positive
3.39
Negative
3.81
Negative
Market Momentum
0.13
Negative
59.76
Neutral
73.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FTCI, the sentiment is Positive. The current price of 3.19 is above the 20-day moving average (MA) of 2.84, above the 50-day MA of 2.85, and below the 200-day MA of 3.81, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 59.76 is Neutral, neither overbought nor oversold. The STOCH value of 73.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FTCI.
FTC Solar Risk Analysis
FTC Solar disclosed 47 risk factors in its most recent earnings report. FTC Solar reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
FTC Solar Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
59 Neutral | $10.75B | 10.37 | -6.64% | 3.00% | 7.30% | -12.02% | |
54 Neutral | $26.35M | ― | -147.73% | ― | -52.61% | -987.53% | |
48 Neutral | $41.05M | ― | -119.27% | ― | -62.71% | 11.58% | |
47 Neutral | $26.00M | ― | -24.84% | ― | -26.75% | 40.98% | |
42 Neutral | $23.58M | ― | -21.91% | ― | 16.55% | 15.72% | |
40 Underperform | $36.52M | ― | -39.70% | ― | 2.37% | -10.00% | |
33 Underperform | $51.53M | ― | 307.38% | ― | -43.42% | -53.77% |
* Technology Sector Average
Performance Comparison
FTCI
FTC Solar
3.32
-1.34
-28.76%
BEEM
Beam Global
1.42
-5.12
-78.29%
NOVA
Sunnova Energy International
0.20
-4.22
-95.48%
SPRU
Spruce Power Holding
2.02
-2.56
-55.90%
MAXN
Maxeon Solar Technologies
3.04
-220.96
-98.64%
TURB
Turbo Energy, S.A. Sponsored ADR
2.67
1.46
120.66%
FTC Solar Earnings Call Summary
Earnings Call Date:May 01, 2025
(Q1-2025)
| % Change Since: 0.00%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant backlog and revenue growth alongside product innovation and reduced operating expenses, suggesting positive momentum. However, ongoing gross loss, net loss, and market uncertainty due to tariffs present challenges. The overall sentiment is cautiously optimistic with strong growth potential but current financial challenges.Q1-2025 Updates
Positive Updates
Significant Backlog and Revenue Growth
Contracted portion of the company’s backlog now stands at $482 million. Revenue for Q1 2025 came in at $20.8 million, which represents an increase of 58% compared to the prior quarter and 65% compared to the year-earlier quarter due to higher product volumes.
1P Product Innovation and Customer Engagement
FTC Solar introduced its first 1P solution, Pioneer, and has greatly expanded the 1P product line. Customer visits to product demonstration facilities have increased 100% and 240% over the past six to nine months compared to the previous year.
Reduced Operating Expenses
Non-GAAP operating expenses were $6.6 million, down from $8.7 million in the same quarter last year and $7.4 million in the prior quarter, marking the sixth consecutive quarter of OpEx reductions.
Negative Updates
Ongoing Gross Loss
GAAP gross loss was $3.4 million or 16.6% of revenue, compared to gross loss of $3.8 million or 29.1% of revenue in the prior quarter. Non-GAAP gross loss was $3 million or 14.4% of revenue.
Net Loss and EBITDA Challenges
GAAP net loss was $3.8 million, with an adjusted EBITDA loss of $9.8 million, which was better than the top end of guidance range but still indicates challenges in achieving profitability.
Tariff and Market Uncertainty
Uncertainty in the market due to tariffs and duties, affecting timing and flexibility in project execution, with some customers waiting for additional clarity.
Company Guidance
During the FTC Solar First Quarter 2025 Earnings Conference Call, the company provided guidance highlighting robust growth metrics and strategic advancements. Revenue for the quarter was $20.8 million, exceeding the high end of their guidance range, reflecting a sequential growth of 58% from the previous quarter and a 65% increase from the same quarter last year. The company has significantly expanded its backlog to $482 million and secured agreements totaling over 6.5 gigawatts with Tier 1 accounts. Their 1P product line now accounts for 90% of bidding activity, with bid volume up 60% year-over-year, and average project size increasing by 65%. FTC Solar expects to achieve adjusted EBITDA breakeven within 2025, driven by continued revenue growth, a diversified supply chain, and ongoing innovation in their product offerings. Despite market uncertainties, such as tariff implications, FTC Solar remains optimistic about its long-term growth potential, underpinned by strong market demand and legislative support for solar energy.FTC Solar Corporate Events
Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
FTC Solar Appoints New Independent Directors Amid Growth
Positive
May 1, 2025
FTC Solar announced its first-quarter 2025 financial results, highlighting a 58% quarter-over-quarter revenue increase to $20.8 million, surpassing targets. The company also reported cost efficiencies and increased customer interest, with bid activity up 60% year-over-year. The board was strengthened with the appointment of Darrell Jackson and Maximillian Sultan as independent directors on April 28, 2025. These developments, along with an expanded product line and strategic agreements, position FTC Solar to capture significant market share in the growing solar industry.
Spark’s Take on FTCI Stock
According to Spark, TipRanks’ AI Analyst, FTCI is a Underperform.
FTC Solar faces significant financial challenges, with persistent losses and negative cash flows weighing heavily on its score. Despite some positive guidance and backlog growth from the earnings call, the technical analysis and weak valuation metrics reflect ongoing concerns. The company’s ability to overcome operational inefficiencies and improve profitability will be crucial for better performance.
To see Spark’s full report on FTCI stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.